SA food inflation drops despite rise in fruit and rice prices

Inflation in South Africa cooled for a second consecutive month in rare good news for the country’s economy ahead of the election next week, data showed on Wednesday.

Annual consumer price inflation reached 5.2% in April month, down from 5.3% in March, national statistics agency StatsSA said.

The economy is among voters’ main concerns ahead of the Wednesday 29 May poll, amid high unemployment, poverty and sluggish growth.

Last week StatsSA announced that South Africa’s jobless rate rose in the first quarter of 2024 to 32.9%.

“Annual inflation for food… moderated further from 5.1% in March to 4.7% in April, representing a fifth consecutive month of decline.”

GENERAL FOOD INFLATION SLOWS, EXCEPT FOR VEGETABLES, FRUIT AND HOT BEVERAGES

Most food & NAB sub-categories witnessed lower annual rates, except for vegetables, fruit and hot beverages.

On average, vegetable prices increased by 7,4% in the 12 months to April, higher than the 6% increase recorded in March.

Vegetable products that recorded relatively high price increases include potatoes, frozen potato chips, broccoli and beans.

The annual rate for fruit rose from 3.3% in March to 4.5%, mainly driven by higher prices for bananas and apples.

Hot beverage inflation increased marginally from 11.2% to 11.4%.

The rates for instant coffee and black tea remain in double-digit territory.

FLOUR AND WHITE BREAD CHEAPER THAN A YEAR AGO

Bread and cereal inflation continued to slow, declining for a 12th consecutive month in April.

The annual rate eased to 4.3% from 5% in March.

Bread flour, cake flour, ready-mix flour, white bread, pasta, rusks, savoury biscuits and maize meal are cheaper than a year ago.

The average price of a loaf of white bread was R18.43 in April 2024, down from R19.07 in April 2023.

On the other hand, sharp price increases were recorded for rice, pizzas and pies, instant noodles and sweet biscuits.

Annual rice inflation accelerated to 26.4%, the highest reading since May 2009 when the rate was 41.9%.

The annual rate for sugar, sweets and desserts cooled to 16.8% from 17.8% in March.

Inflation for products such as white sugar, brown sugar, chocolates and jam remain elevated.

EGG INFLATION

Egg inflation recorded its fifth consecutive month of decline after peaking at 39.9% in November 2023, then receding to 25.1% in April 2024.

Except for whiteners, condensed milk, Gouda cheese and fresh cream, most products in the milk, eggs and cheese category recorded lower annual rates in April.

This pulled overall inflation for the category down to 8.7% from 10.1% in March.

WHERE ARE YOU FEELING THE PINCH AT THE TILLS?

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